In the court papers, Rooplal states that Madzonga allegedly participated and benefited from fraud, while stating that Vele had apparently acquired shares fraudulently.

Rooplal refers to Madzonga, Ramavhunga, Truter and others as the "perpetrators" who caused the bank to lose over R1.5-billion.

He states that Vele received a R745 000 cut from over R900 000 worth of fraudulent deposits made by the said perpetrators.

"Having regard to the devious manner in which the fraud was perpetrated and how the perpetrators have sought to conceal the fraud, it cannot be put beyond them to further dissipate and conceal the proceeds of the fraud," he states.

The alleged looting might result in about 14 municipalities, state-owned asset management firm Public Investment Corporation (PIC) and Venda residents losing their monies.

Victims of the scandal could now be seen sleeping outside the bank's headquarters in Sibasa and Thohoyandou in a bid to get their monies back.

Since the bank was placed under curatorship, depositors were only allowed to withdraw a maximum of R1000 a day, while burial societies could only get R7000 per funeral, provided they produced an original death certificate.